Crypto loan platform Cred stopped all deposits and withdrawals, citing a fraud incident.
Cred, a popular platform that can withdraw cryptocurrency-based loans and earn interest from cryptocurrencies, closed all deposits and withdrawals in a surprising decision. In the statement made by the company, it was reported that a fraud incident occurred and there was cooperation with law enforcement on the issue.
Statement on doubts: “We were not hacked”
Cred emphasized that the platform was not hacked and that no customer’s personal data or account information was exposed, and that they could not provide further details and that all money inflows and outflows will be suspended until detailed information is published in the next two weeks. However, the company suspects this may have been done by an insider.
The incident negatively affected the balance sheet
The Cred team confirmed that the fraud incident negatively impacted the company’s balance sheet. The company states that it is currently conducting a comprehensive assessment process regarding the incident.
Users could earn interest by depositing cryptocurrencies at Cred, which was established in 2017 and is headquartered in San Francisco, or they could use credit with crypto money collateral.
Interestingly, the popular trading platform Uphold had announced to its customers on Sunday that it had decided to terminate its current business relationship with Cred.